Prepaid expenses, depreciation, accrued expenses, unearned revenues, and accrued revenues are all examples of
A) Items that require contra accounts
B) Items that require adjusting entries
C) Classified balance sheet accounts
D) Assets
E) Income statement accounts

Question

Quizplus · Accepted Answer

Prepaid expenses, depreciation, accrued expenses, unearned revenues, and accrued revenues are all types of transactions that require adjusting entries in order to accurately reflect them in the financial statements at the end of an accounting period.

Prepaid Expenses, Depreciation, Accrued Expenses, Unearned Revenues, and Accrued Revenues